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February 12, 1960
Mr. F. J. Mills
Uniob Oil Company of California
Union oil Company Building
Midland, Texas
Dea Mr . Mills:
ticr ter
Investigation subsequent to out telephone discussion discloses
that United States National Company owns acreage in Section 54, Block 33,
H. & T. C. RE. Co. Survey, Ward County, Texas, in addition to certain
nearby additional acreage, whereunder all of the minerals are owned by
United States National Company.
After discussion with the interested parties, we feel that your
suggested offer for a 10-year oil and gas lease of $15.00 per acre base
is hardly realistic, We therefore suggest that you take the matter of
such a lease up with your principals with the idea of making an offer
rather more in accord with present conditions. Our immediate thought is
that ar y such lease should be for a 3-year term; with a cash bonus of
somewhat more than you suggest; and a royalty of 3/16th.; or in default
thereof, an oil payment.
Anticipating your further communication in this matter,
Yours very truly,
UNITED STATES NATIONAL COMPANY
55
cc Mr. I. H. Kempner
Galveston, TexaS
By
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Secretary
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